RHB

What is FATCA?

FATCA is Foreign Account Tax Compliance Act aimed to obtain information of U.S tax evaders worldwide.

The Act mandates financial institutions to:

  • Identify U.S persons holding financial accounts outside U.S and investors from other countries investing in U.S;
  • Report on U.S Individual and Legal Entity's foreign financial assets; and
  • Impose 30% withholding tax on any U.S FDAP* source income paid to recalcitrant and NPFI customers.

*U.S FDAP source income examples are annuities, dividends, emoluments, interest, premiums, remunerations, rental, salary, wages, etc.

The following types of customers are required to disclose information for FATCA compliance:-

Individual Legal Entity

Individual with U.S citizen or Tax Resident or Greencard holder
Legal Entity that is U.S incorporated or with U.S address
Non-U.S individual with U.S Indicia
Passive Non U.S Legal Entity with U.S Beneficial Owner

RHB must abide to FATCA requirements as it is registered with the U.S Inland Revenue Service (IRS) and had obtained a valid GIIN.

Is it applicable to me or my organization?

Individual Customers

FATCA applies to you if you have the following U.S indicia which determine your FATCA status:

  • U.S citizen or resident - possess either U.S passport, U.S Green Card, Substantial Presence Test
  • U.S place of birth
  • U.S residence address, mailing address or P.O. Box
  • U.S telephone number
  • Standing Instructions to pay a U.S account
  • An “in care of” or a “hold mail” address that is the sole address with respect to the customer
  • A power of attorney granted to a person with U.S address

Legal Entity Customers

FATCA applies to all legal entity customers.

To determine your FATCA status or classification, you may need to refer to your tax advisor or visit U.S Inland Revenue Service (IRS) website at www.irs.gov/FATCA for further details.

Please take note that RHB is not in the position to advice you on your tax status or classification.

 

What should I do if FATCA is applicable to me or my organisation?

You are required to declare your FATCA status and provide documentary evidence.

What type of FATCA documentary evidence is required?

The following U.S Inland Revenue Service (IRS) forms are required:

Type Particulars U.S Non U.S
Individual U.S Citizen or Green card holder or Fulfill Substantial Presence Test W9 Form
N/A
U.S Place of Birth W8 BEN Form and Certificate of Loss of Nationality
U.S Address W8 BEN Form
U.S Telephone Number
SI to U.S Account
Customer with "in care of" address or a "hold mail" address
A power of attorney granted to a person with U.S address
Legal
Entity
Foreign Financial Institutions (FFI) N/A Valid Global Intermediary Identification Number (GIIN)
U.S Legal Entity that is U.S incorporated or with U.S address W9 Form
N/A
Passive Non US Legal Entity with U.S Beneficial Owner W9 Form
N/A
All other types of Non-U.S Legal Entity N/A W8-BEN-E Form

 

What will happen if I refuse to disclose the required information?

The bank may impose 30% withholding tax on U.S FDAP source income or terminate relationship with the customer.

What do I/ my organisation have to do if there is any change in my/ my organisation’s details or FATCA status?

For any changes of customer's details, the customer is required to inform and provide necessary documentary evidence to RHB within 30 days of change.

Where can I get more information on FATCA?

You can find detailed information on FATCA at www.irs.gov/FATCA

When will the requirements take effect?

Effective date of FATCA for the following:

  • For Individual – 1st July 2014
  • For Legal Entity – 1st January 2015

Last updated: March 2015